The budget deficit narrowed because state revenues recorded Rp 101.4 trillion, or grew 14.7% over the same period last year. Meanwhile, state expenditures grew by 3.86% to Rp 138.41 trillion. As for this year, the government is targeting budget deficit of Rp 325.94 trillion or 2.19% to GDP. Finance Minister Sri Mulyani Indrawati explained that the amount of state revenue is mainly supported by tax revenue. "Tax revenues grew 11.4% compared to 2017, with realization of Rp 82.47 trillion," he said in his office, Jakarta, Tuesday (20/2). (See also: January Tax Growth Reaches 11%, Highest In Four Year).

Meanwhile, the realization of state expenditure includes central government expenditure of Rp 63.77 trillion and Transfer to Regional and Village Funds (TKDD) of Rp74, 63 trillion. The realization of central government expenditure increased 10.68% over the same period last year due to the high realization of capital expenditure and social assistance. Sri Mulyani explained, in line with the decrease in budget deficit, the deficit of primary balance fell to Rp 13.9 trillion from the same period last year Rp 22.2 trillion. The primary balance is the total state revenues minus expenditure, excluding debt interest payments.

The government is aiming for the primary balance deficit to drop gradually to zero or even a surplus. That way, the quality of the budget gets better because the government no longer attracts debt to pay interest on debt. In accordance with the provisions, the budget deficit is patched by the financing, mainly from the issuance of bonds. Until the end of January, the realization of financing was recorded at Rp 21.8 trillion. With these developments, the debt ratio is claimed to be safe. (Read also: Highest in 4 Years, 2017 Government Overseas Debt Up 14%). "The position of debt at the end of January 2018 is about 29% of GDP and the government keeps it at a safe level by keeping the risk of exchange rate and interest rate changes," said Sri Mulyani.